DePhillips Tests Dems’ Appetite to Make N.J. More Affordable with Sales Tax Cut Legislation 

11/13/2025

“The Murphy administration has raised taxes by $21 billion and a dozen tax increases were just passed by Trenton Democrats to fund our state budget. It’s time to test their election-year talking points on affordability by pressuring them to slash the sales tax to help struggling families. This is a tax cut people will feel every day, not a gimmick or rebate that only gets processed at politically convenient times,” DePhillips (R-Bergen) said.

In June, Gov. Phil Murphy and Democrat legislators passed a nearly $59 billion budget with $843.4 million in increased tax revenue from hikes on home sales, cigarettes, gambling and more. The sales tax is the largest source of revenue for the state budget’s general fund, producing more than $14 billion a year.

“The state sales tax is regressive, disproportionately burdening working families and people living paycheck-to-paycheck. Every time a consumer goes shopping, Trenton takes its cut. The state has a real spending problem that is contributing to our affordability crisis,” DePhillips said.

Forty-five states collect a statewide sales tax at an average rate of 7.5%. Pennsylvania has a rate of 6.34%, Maryland’s is 6.0%, Connecticut’s is 6.35%, and Delaware does not impose a statewide sales tax.

“Local economies would get a boost and we would become more competitive if the sales tax was lowered. The costs of energy, car repairs, food and life’s other unavoidable expenses will go down,” DePhillips added.

The bill would take effect Jan. 1, 2026 if passed and signed into law.

“My tax cut proposal represents an opportunity for New Jersey to take the lead in a good way for once by demonstrating that the state is serious about affordability,” DePhillips said. “If the majority on the other side of the aisle really wants to begin to address the root causes of this crisis, they should start with my bill.”